:: BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED ::

Bangchak Petroleum Public Company Limited (BCP or Bangchak) has co-existed mutually with the environment and the society all along. The sustainable co-existence is possible because the Company has not only recognized but it has also safeguarded environmental and social values. Conducting its business on a happiness-sharing basis, the Company has paid heartfelt attention to every step in its operations to ensure that it has given the best thing to every life in this world. Being a part of the world, the Company’s corporate culture is about the mutual blend of lives and work.

Responsible Business Operations

Pursuant to a resolution passed by the Prem Tinsulanonda-led Cabinet, the Company was founded in 1985 to give energy security and better society to the country.

From 1985 till now, the executives and the employees of the Company have been committed to fulfilling its two main missions. As a result, the Company’s business has been growing on a sustainable basis with concrete contributions to Thai society.Indeed, the Company has sustainably developed its business with the environment and the society.

The Company has expanded its business without compromising its responsibility towards its stakeholders, society and the environment. Throughout its operations, its corporate culture has required its employees and executives to “be virtuous, knowledgeable and contributive to the society”. They are also expected to be committed to “developing sustainable business while safeguarding the environment and society”, conducting business transactions transparently, and achieving the balance between “business profits” and “social as well as environment values”.

To nurture its aforementioned work culture, the Company has made its social responsibility a part of its vision, missions, goals and business plans. It has also embraced the corporate-governance principles and Sufficiency Economy philosophy as its frameworks. The Company has deployed business tools such as Balance Score Card, risk management, ISO 14001 international environmental-management systems, OHSAS 18001 international health & safety standard, and Triple-bottom line concept (Economic, Social and Environment) in its operations. Also, the Company has prepared guidelines for its employees and trade partners to follow.

The Company has also published its Sustainability Report on a yearly basis. The report is compiled in line with Global Reporting Initiatives’ guidelines. Published separately from the annual report, the Sustainability Report lists the Company’s environmental and social work.

Currently, the Company has adopted the social-responsibility guideline of ISO 26000 as well as those prescribed by the Stock Exchange of Thailand and the Industry Ministry’s Department of Industrial Works. The adoption is intended to ensure that the Company’s social-responsibility efforts efficiently respond to new changes in the society.

The Company has paid attention to not just “profits” from its operating results but also “values” from its environmental and social work. Its Corporate Social Responsibility (CSR) activities cover:

Corporate Governance
Employee Management and Human Rights
Environmental Work
Fair Business Practices
Responsibility towards Consumers
Social and Community Development

The CSR activities at the Company can be categorized into two groups:

CSR IN PROCESS - Showing responsibility towards the society, the Company has minimized any unwanted impact from its operation on stakeholders while striving to deliver as much benefits as possible to the society. The CSR in process is the main focus in all international CSR standards.CSR AFTER PROCESS - This is about activities catered for the benefits of some target groups such as the Company’s neighboring communities, environment protection, social welfare and charity. The Company has arranged all these activities directly in response to the needs of stakeholders.

The Company’s CSR Management by Business Lines

Treatment of Stakeholders

The Company has honored the rights of all stakeholders. Its Board of Directors has also set up mechanisms to promote the cooperation between the Company and stakeholders in strengthening the Company’s financial stability and sustainability. These stakeholders include the Company’s employees, customers, trade partners, competitors, shareholders, and particularly its oil refinery’s neighboring communities as well as the environment. Being a giant industrial operator, the Company has been aware that it must give priority to environmental protection and safety issues.

In its Sustainability Report, the Company has detailed what it has been doing for the environment, the society and the economy. Published for shareholders, stakeholders and the general public, the Sustainability Report reflects the Company’s commitment to conducting business ethically without compromising the environment and safety. The Company is also committed to improving the country’s economy and quality of life. The Company, as a result, has been involved in various activities for the benefits of communities and society. At the Company, CSR and Corporate Governance are the guiding principles.

The Company has formulated guidelines about how to treat stakeholders in its “Corporate Governance Policy”. The guidelines respect the rights of all stakeholders well beyond what has been prescribed by the law. They can be summarized as follows:

Employees
The Company is fully aware that employees are the driving force behind its progress, and therefore supports efforts to improve their abilities. The Company has also treated all the employees equally, giving them appropriate and fair remunerations. Fringe benefits includes medical welfare, transportation services, birthday party, Children’s Day activities for the children of employees, and various recreational clubs where the employees can relax after work (further details are listed in the 2008 Sustainability Report). Moreover, the Company has also set up the Employee Stock Option Program (ESOP) to reward employees and encourage them to execute their duties effectively, which in turn will best to the Company’s business and operating results.
Customers and the Public
The Company has striven to improve the quality of its products and services to maximize customer satisfaction as well as trust. Its policy is to deliver products that meet customers’ needs or exceed their expectations, under fair conditions with customers being given adequate, accurate and up-to-date relevant information. The Company shall not resort to any exaggeration which may mislead the customers about the quality, volume, or conditions of the products or services. Also, the Company’s employees shall keep customers’ confidential information a secret and shall never illegitimately use the said information for personal interest or the interests of any other entity.
Trade Partners
Not only that the Company has put its procurement and hiring ethics in its rules, but it has also applied these ethics to the distribution of its petroleum products as well. Guided by the ethics, the Company has maintained proper, fair and efficient relationships with its trade partners according to corporate-governance principles. Its trade partners are given “Business Contact Manual” and “Guidelines for Bangchak Service Stations’ Agents” to ensure that they can conveniently and properly conduct their business with the Company. The manual and guidelines are prepared based on corporate-governance principles, business ethics, and the Company’s policy to treat all trade partners fairly and equally. The Company has also striven to ensure that its trade partners receive fair remuneration. Throughout its operations, the Company has strictly complied with the terms and conditions of contracts it has entered into. If any stipulation in the contracts becomes impossible to comply with, the Company shall immediately notify its trade partners so that they can explore solutions together.
Creditors
The Company has treated its creditors with fairness, responsibility and transparency. It has strictly abided by financial obligations and any term or condition stated in a financial agreement. The Company shall never resort to dishonest means such as concealment of information, which may cause damages to its creditors. If any stipulation in the financial agreements becomes impossible to comply with, the Company shall immediately notify its creditors so that they can explore solutions together.
Competitors
The Company has conducted its business ethically and transparently. When engaging in a competitive environment, it has competed with its competitors fairly. The Company shall never use dirty or improper means for beating its competitors. For example, the Company shall never slander its competitors nor shall it bribe their employees.
Shareholders
The Company is committed to reliably conducting its business in line with good corporate-governance principle and to be steadfast in ensuring the Company’s financial security so as to maximize its share value.

Communities around the Company’s Oil Refinery
The Company has considered the occupational, safety, and environmental management a part of its business. Therefore, it has drawn up a policy about occupational health, safety, environment and energy efficiency to give guidelines for its Directors, executives, and all employees to follow as parts of the Company’s corporate culture of “sustainably developing business with the environment and society”. The rules on this matter are as follows:

1.	The Company’s Directors, executives, and all employees shall work safely, without causing a negative impact on themselves, those involved, communities or the environment.
2.	They shall abide by all applicable laws about occupational health, safety, environment and energy.
3.	They shall prevent pollution, oil leakage or loss.
4.	They shall prevent accidents in all aspects.
Efficient use of resources, namely energy, water and chemicals, in line with business goals Regularly improve the occupational health, safety, and environmental management